Is anyone really surprised that people are upgrading less frequently? My previous employer supplied me with a new iPhone every year at it's release (we tested iPhone accessories)... I stopped upgrading at the 7 Plus, and have been using that model since it's release. It's worked fine and pretty much has met my needs since then... about the only complaint is the battery could be replaced at this point. This is the first year though since the 7 Plus that I've considered upgrading, and that's really more because I'd like to have the new upcoming camera...

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Yes, I'd say there is a lot you are missing - camera for sure, but you'd notice a lot of differences in a new model

In a developed market like the US, this makes sense. Curiously, imo Apple should’ve focused in pushing people into the iPhone Upgrade Program instead of trade ins. Getting people to be in the iUP is the obvious step as that will ensure regular upgraders on a yearly basis.

That's not a conclusion that you can reach based on the data provided. It would be like saying Apple has over a billion active devices worldwide therefore they have over a billion users worldwide.

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Oh, and Apple does have around a Billion active iOS users across considering there are around 1.3 billion active iOS devices worldwide.
Apple reported 782 million active iCloud users over 3 years ago and 885 million active iTunes/App Store users way back in Nov 2014. Asymco projected the latter figure would have passed 1 Billion active iTunes/App Store users by the start of 2015 and 1 Billion iCloud users by early 2017. And remember, a large proportion of those iTunes accounts are shared family accounts with the one credit card.

3. Outstanding premium devices that many millions of satisfied repeat customers are willing to open their wallets and purchase year after year after year.

4. Excellent and highly rated customer service.

5. Frequent software updates.

6. Apple placing high regard on privacy and security.

7. Various Apple services that work well with devices.

8. Apple Stores.

9. Relatively decent resale value.

That's just a few that quickly come to mind.

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Doesn't line up with any average iPhone user I've met. These people are far too busy to bother with even setting up a new phone with a different OS, not to mention acquiring the fluidity of accomplishing their daily uses. It's like pulling teeth just to get them to swap to a newer iPhone (the setup part); forget about setting up a new OS for them.

These average users I see everywhere aren't Apple-centric, never use customer service or an Apple Store, are annoyed by the update reminders, and don't sell their used phones, handing them down, instead. I make exceptions for techies and for the young adults who aren't swamped by careers, children, and family living. What keeps the truly average user on an iPhone is purely the conveniences of familiarity and saving time.

When the SE2 didn't materialize the iPhone choices became phablet A vs phablet B...all with no HP jack.
Apple's dumb decisions are catching up with them. The old Jobs comment that we the consumers don't know what we want until Apple shows us, was true when Apple was putting out truly innovative and revolutionary products. Those days are gone. Today it is we the consumers who know what WE want...and Apple can no longer smugly ignore us. And coming up with incremental versions that are functionally inferior to the last generation is just churn for the sake of churn and $$$. Unfortunately the tech industry is stuck with a business model where they can only survive if yesterday's products are thrown out every year or so and consumers are forced to "keep up or else"....
I have had my toaster for 30 years. Still works and does everything I need. Wasn't even tempted by a "smart toaster" (with USB port and trendy colors) that started talking to me as I walked by it...

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Exactly, the lack of HP jack is the killer for me. When my iPhone 6 dies, I'll be changing to an Android. Not because I want to, but because there is so much high quality choice, and Apple's removal of functionality in their new phones rules them out.

Exactly, the lack of HP jack is the killer for me. When my iPhone 6 dies, I'll be changing to an Android. Not because I want to, but because there is so much high quality choice, and Apple's removal of functionality in their new phones rules them out.

3. Outstanding premium devices that many millions of satisfied repeat customers are willing to open their wallets and purchase year after year after year.

4. Excellent and highly rated customer service.

5. Frequent software updates.

6. Apple placing high regard on privacy and security.

7. Various Apple services that work well with devices.

8. Apple Stores.

9. Relatively decent resale value.

That's just a few that quickly come to mind.

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The "Tight integration/sharing data between Apple iOS/macOS/watchOS/tvOS apps." is actually a huge negative for me. When I upgraded laptops, but hadn't copied my music over, Apple's tight integration resulted in all the music being silently deleted from my phone. I simply couldn't believe it.

And the "Tight integration" also makes it excruciatingly difficult to transfer files to/from.

This "Tight integration" is actually one of the things that in a way makes me look forward to when my iPhone 6 dies and I move to an Android (because the new iPhones no longer have a HP jack).

No surprise there. The Smartphone market is very mature. Growth will slow in cell phones while it continues to grow for wearables and tablets.

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Lack of headphone jack removes exactly no functionality.

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Only in your imagination. It's a big enough war trying to stop extortionately expensive lightning cables from disappearing, the last thing I want is to have the same issue with lighting HP dongles. Not to mention the charging whilst using headphones issue. And don't even get me started on the mess that is bluetooth, so don't even think about going there. I've had this conversation with iPhone 7 and newer users, and they all get in a ball of anger when agreeing that the lack of HP jack is a major pain in the butt. Yes, it damn well is a removal of functionality, and yes I damn well am going to move to Android because of it.

In a developed market like the US, this makes sense. Curiously, imo Apple should’ve focused in pushing people into the iPhone Upgrade Program instead of trade ins. Getting people to be in the iUP is the obvious step as that will ensure regular upgraders on a yearly basis.

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Since when we need lease smartphone for god sake. I am still being amazed by how we love use credit for everything. This is how every household is so tied on debts and living pay cheque by pay cheque.

And they all run Android, not an option for many. Specs are only part of the equation and iPhones have great specs.

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Apparently it does for many. Android has more than 80% of market share. Maybe people in the North America are so obsessed with iPhone, but it is certainly not case outside of North America. Where what’s app and WeChat rules all.

Actually it is. CIRP's figures give the 193m iPhones a MASSIVE 69% share of the 278m active installed base of smartphones in the USA (as reported by NewZoo) and still growing.

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Well, actually it's like I said. You can't draw that conclusion from the info provided. For your conclusion to be true, the phone to person ratio would have to be 1-to-1. The data doesn't imply that and you can't infer it on your own.

Oh, and Apple does have around a Billion active iOS users across considering there are around 1.3 billion active iOS devices worldwide.
Apple reported 782 million active iCloud users over 3 years ago and 885 million active iTunes/App Store users way back in Nov 2014. Asymco projected the latter figure would have passed 1 Billion active iTunes/App Store users by the start of 2015 and 1 Billion iCloud users by early 2017. And remember, a large proportion of those iTunes accounts are shared family accounts with the one credit card.

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In 2016 Apple reported 1 billion active devices. That's not iOS devices. That billion represents iPhone, iPad, Mac, iPod touch, Apple TV and Apple Watch. At that time Credit Suisse estimated that the average Apple customer owned 1.7 devices. That's close to 600 million users. We probably own more Apple devices per person today, so just guessing but I think that average probably went up. To get to the billion users against the 1.3 billion active devices, the average has to go down. I doubt it did.

Since when we need lease smartphone for god sake. I am still being amazed by how we love use credit for everything. This is how every household is so tied on debts and living pay cheque by pay cheque.

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Majority of smartphone purchases in developed markets are through contracts, which is basically the same as leasing. iUP is the same, only it removes the carrier from the equation so customers deals directly with Apple for the hardware.
Credit is useful when it is used wisely. With iUP, The iPhone XS 64GB is just $50 a month, including AppleCare plus. That’s just $600 after 12 months with 0% interest, and then you can upgrade to the latest iPhone then. Sounds like a better deal to me than paying $1k upfront for the same phone (not including AppleCare).

If you fail to see the advantage of those program, suits yourself. Keep paying Apple thousands of dollars upfront.

Majority of smartphone purchases in developed markets are through contracts, which is basically the same as leasing. iUP is the same, only it removes the carrier from the equation so customers deals directly with Apple for the hardware.
Credit is useful when it is used wisely. With iUP, The iPhone XS 64GB is just $50 a month, including AppleCare plus. That’s just $600 after 12 months with 0% interest, and then you can upgrade to the latest iPhone then. Sounds like a better deal to me than paying $1k upfront for the same phone (not including AppleCare).

If you fail to see the advantage of those program, suits yourself. Keep paying Apple thousands of dollars upfront.

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Advantage? There really isn't any financial advantage.

I rather pay 1000 then sell the phone after a year for 700. After taxes my total expense is 400 while yours is 600. You lost 50% more money. How is this an advantage?

Do you really think Apple has this lease program for customers to save money? Lol when did apple become a charitable company?

Well, actually it's like I said. You can't draw that conclusion from the info provided. For your conclusion to be true, the phone to person ratio would have to be 1-to-1. The data doesn't imply that and you can't infer it on your own.

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Incorrect. NewZoo is the one reporting that there are 278m active smartphones in the USA. 191m iPhones divided by 278m smartphones gives the iPhone a 69% share of the active smartphones in the USA. The population of the USA = 327m so I’m not sure where your 1:1 ratio comes from?

Um, you're using Credit Suisse's guesstimates. Using Apple's reported numbers, there were 785m active iCloud users in mid-2015 when they reported having 1 billion active devices. That is a ratio of 1.27 active devices per iCloud user.

Since when we need lease smartphone for god sake. I am still being amazed by how we love use credit for everything. This is how every household is so tied on debts and living pay cheque by pay cheque.

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Apparently it does for many. Android has more than 80% of market share. Maybe people in the North America are so obsessed with iPhone, but it is certainly not case outside of North America. Where what’s app and WeChat rules all.

My phone does not have the feature, but if it did it will be the first thing to disable/bypass. A passcode is more secure than a thumbprint or FaceID. Think about it for a minute!

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This is bad reasoning. There are many things that would bring you more security, but for want of convenience you take a short cut. Also, biometrics have advantages over keyboard input.

A password is stronger than a passcode, yet most people do not use one because they are more difficult to enter. You could further add layers of security credentials and physical barriers, but again most people want the convenience.

Of course there is the most common problem the average person will have with any password/code/pattern: someone seeing it entered! Many banks or parents would tell you how easy shoulder-watching is. Entering your biometrics doesn’t reveal your password which is advantageous.

Face ID is very secure and very convenient, maybe you should reconsider your choices.

Considering that there is 327 million people in the US. 50 million are 11 years old or below (don't know many people who are buying phones for their 9 year old).… That means roughly 70% of the phone buying population in the US owns an iPhone. I don't think you can expect bigger increases after hitting that landmark.

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Higher prices don’t justify upgrading. Wait till new tariffs are added and then wait till next quarter earnings come out

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